Blue Dolphin Energy Company (BDCO)

[Milo1]

Current P/E is about 1.3, with current revenues for the next year (based on the last quarter) 26M/yr profit, and 14.8M shares outstanding (2M float). This profit margin is based on last quarters oil/gas prices, with oil averaging less than $100/ barrel. If the price of oil rises to the projected $150 / barrel, profit margin rises exponentially. Exponentially!

When I say exponentially it works like this. If a company is working off a 1% profit margin, and the price of their product rises by 10%, that equates to a 100% profit increase. Now ask yourself how much the price of gasoline has gone up over the past 3 months. More than 10%...?

Based on last quarter's oil prices (Less than $100/barrel) an appropriate PE of 10, puts the share price above $17.

When the projected oil shortage peaks and prices rise to $150/ barrel, that could equate to a share price somewhere in the clouds, and make $17/share look like the ground floor.